RBC Financial Group
RBC Home | Search | Site Map | Contact Us | Legal Terms | Français  
Other RBC Sites:
Banking Investments Capital Markets
» Corporate Profile
» Corporate Governance
» History
» Investor Relations
Media Newsroom
 News Releases
 Editorial Edge
 RBC Executive Profiles
 Speeches
 RBC Facts
 RBC Purchasing Managers’ Index
 RBC Canadian Consumer Outlook Index
 RBC U.S. Consumer Outlook Index
  News Releases
 Special Reports
 Multimedia
 Events Calendar
» RBC Social Media
» Economics
» Publications
» Community & Sustainability
» Careers
» Diversity
» Become a Supplier
» Become an Employee
» Make a Complaint

RBC CASH Index

 

U.S. consumer confidence weak, but ticks up slightly, according to RBC CASH Index

NEW YORK, March 12, 2009 — Despite mounting job losses and a stock market spiraling toward a 12-year low, U.S. consumer sentiment edged up this month according to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index. The survey, which measured the attitudes of 1,000 Americans earlier this week, found that consumer sentiment remained very low, but stable. As a result, the overall RBC CASH Index stands at 8.2 for March 2009, up slightly from 1.6 in February, the lowest level on record since the inception of the Index in 2002.

"Consumer confidence looks to be trying to find a bottom," said Larry Miller, managing director, RBC Capital Markets. "The March improvement taken together with the stabilization of spending intentions we've seen in our restaurant and other consumer surveys and in the Institute for Supply Management (ISM) may suggest the consumer has dialed back its spending to a level that is reflective of the current macroeconomic realities. Holding these levels will be key to restoring investor confidence."

The RBC CASH Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The Index is composed of four sub-indices: RBC Current Conditions Index; RBC Expectations Index; RBC Investment Index; and, RBC Jobs Index. The Index is benchmarked to a baseline of 100 assigned at its introduction in January 2002. This month's findings are based on a representative nationwide sample of 1,000 U.S. adults polled from March 5-9, 2009, by survey-based research company Ipsos Public Affairs. The margin of error was ±3.1 per cent.

Highlights of the survey results include:

  • The RBC Current Conditions Index rallied to 14.8, up 13.2 points compared to February's 1.6 record-low level. Currently, 35 per cent of Americans rate their personal finances as weak, down from 39 per cent last month. Consumers' evaluations of the current state of their local economy also improved this month as nearly half of Americans (48 per cent) rated their local economy as weak, down from 54 per cent in February.

  • Consumers' overall opinions regarding investing also edged up this month. The RBC Investment Index, which was at 17.6 in February, currently stands at 24.6. Most of the increase in investment confidence stems from improvements in consumers' financial conditions, although consumers are still anxious. And, despite the plunge in the value of the stock market, the number of Americans who believe it is a "bad time" to invest in the stock market held steady at 70 per cent this month.

  • With unemployment rates creeping to their highest levels in two decades, the RBC Jobs Index dropped to an all-time low of 40.8, down from 42.3 in February. The decline in American's job security confidence is led by real experiences in job loss. Nearly two-thirds (64 per cent) of Americans say that they or someone in their close circle has lost their job in the past six months due to the economy, up from 62 per cent last month.

  • Although still in negative territory, the RBC Expectations Index held steady in March, ticking up just 2.2 points to - 25.9, up from - 28.1 last month. This month, 31 per cent of Americans say they expect their personal financial situation to improve over the next six months, a decrease from 33 per cent in February. Confidence in the recovery of local economies is more mixed; one-in-three
    (30 per cent) consumers believe the local economy will strengthen in the next six months, nearly one in four (38 per cent) believe it will stay about the same and one in three (30 per cent) believe it will weaken.

The entire RBC CASH Index report can be viewed at: www.rbc.com/newsroom/rbc-cash-index.html.

- 30 -

Contacts:
Loretta A. Healy, The Hubbell Group, Inc., (781) 878-8882
Kevin Foster, RBC, (212) 428-6902

 


Take Action
  Contact a member of the Media Relations Team


In the news
  RBC PMITM signals solid output growth in February (14.03.03)
  RBC seeks emerging painters to enter 16th annual RBC Canadian Painting Competition (14.02.21)
  Royal Bank of Canada announces results of conversion privileges of Non-Cumulative 5-Year Rate Reset First Preferred Shares Series
AJ & AL (14.02.14)
  More »


  Special Reports
 
  RBC Canadian Manufacturing Purchasing Managers'Index
 
04/08/2010 13:34:20